Place An Image In Text
Open the photo you want to use to fill your text. I am using the photo below.
Double click on the background layer to create a regular layer that can be edited. Give it a name. I am naming my layer Photo. Notice the lock disappears in this layer.
Duplicate The Background Layer by dragging the layer to the new layer icon at the bottom of the layer panel. You will now have a layer called Photo copy or Name copy, being Name being what you named your layer.
Add A new blank layer between the two layers by clicking the new layer icon at the bottom of the layer panel. If you are on the copy layer you can hold down the Ctrl key while clicking the new layer to place the new layer below the copy layer. By default layers are added above the selected layer. Your layer palette should now look like the graphic below.
Fill the new layer with white by selecting Edit > Fill and select white as the fill color.
Now you will add your text. Select the Photo copy layer in the layer panel to make sure you can see your text as you type. Select the Horizontal Type tool and click on the canvas and type your text. Before you enter your text set your font size, face, and color on the text options panel at the top of the document window. For this activity you will use the color white. Choose a fat font to showcase your photo fill. Don't' worry about the exact size because you will use the free transform options to enlarge the text.
With the Type Tool selected, your font chosen and white as your Foreground color, click inside your document window and add your text. I am using my initials for this activity. You can type any text you want.
Next you will resize and reposition the text with the free transform tool. With the text layer selected click Edit > Free Transform. Drag the handles and drag out your text to fill the canvas. Click the check mark icon at the top of the document window to accept the change.
Drag the text layer below the Photo copy layer. The text will temporarily disappear inside the document window now that the image on "Photo copy" is blocking it from view.
Select the Photo copy layer and to create the illusion that the photo is inside the text, you need to use a clipping mask. With "Photo copy" layer selected in the Layers palette, go up to the Layer menu at the top right hand side of the layer panel and and choose Create Clipping Mask:
You now have text that is filled with your photo.
No to make your text stand out you will add a stroke to your text. Since you now have the effect you want you can merge all the layers. On the top right side of the layer palette click the arrow to open the layer option menu and select Flatten Image.
You should now have just one layer in the layer palette.
With the magic wand tool click anywhere on the white background to select it. Then you will inverse the selection to select the text. To inverse a selection select Selection > Inverse.
For my text I need to also select the space in the letter P. To select another part of the graphic while holding down the Shift key select the area. Both areas are now selected.
To add the stroke select Edit > Stroke and select a color, size, and alignment of your stroke. The stroke settings I used is shown below:
My finished product is shown below: